Calculating and Analyzing a Cash Flow Statement for Finance

This assignment provides a detailed analysis and calculation of a cash flow statement. It includes the calculation of cash paid out to suppliers and employees, net cash used in investment activity, repayment of loans, net increase in cash, and cash balance at the beginning of the year. Formulas are provided for each calculation, and the final figures are derived based on the given financial data. The assignment also references relevant academic sources to support the methodologies used in the cash flow statement analysis. Desklib provides this and many other solved assignments and past papers to help students excel in their courses.

Running head: CASH FLOW STATEMENT
CASH FLOW STATEMENT
Name of the Student:
Name of the University:
Author Note

1CASH FLOW STATEMENT
Table of Contents
A. Cash paid out to supplier and employee................................................................................2
B. Net cash used in investment activity.....................................................................................2
C. Repayment of Loans..............................................................................................................3
D. Net increase in cash...............................................................................................................3
E. Cash balance at the beginning of the year.............................................................................3
References..................................................................................................................................4

2CASH FLOW STATEMENT
A. Cash paid out to supplier and employee
Cash paid out to supplier and employee is an expense for the company. It is expenses
is related to the operating expenses of the company. Hence, it is deducted from the total cash
received for the company. This is the amount, which the company paid to its suppliers and
the salary or the wages to their employee during thee given period (Ball et al., 2016). This
effect the net cash provided by the operation of the company as well as the net cash flow of
the company for the period.
Here, the cash paid out to supplier and employee is calculated by using the formula
that is [Net cash provided by operating activity - {Cash received from operating - (Interest
paid + Tax paid)}]. The answer for the question A that is the value of the cash paid out to
supplier and employee is come as the (3,559,073) and this is a negative figure as it is an
expenses for the company and subtracted from the revenue of the firm.
B. Net cash used in investment activity
This figure show the total cash used by the company in the investment activity for a
period. In simple words, how much cash company spend in the investment activity during the
period (Lewellen & Lewellen, 2016). This is also an expense for the company and hence
effect the net cash flow of the company for the period.
The formula for calculating the net cash used in investment activity is [Net flow form
operation – investment made during the period]. Here, the answer of the question number B
should be same as the value of purchase of equipment that is 4,272 because this is the only
investment made by the company during the period. The figure is in negative because it
traded as a expense for the company.

3CASH FLOW STATEMENT
C. Repayment of Loans
The repayment of loan is another expense for the company. This shows the figure
incurred by the firm to repay its loan. This also effect the net cash flow of the company.
The figure of repayment of loan is calculated in the basis of the formula [Net cash
used in the financial activity – {(New loan + fund received) - (repayment of credit +
repayment of note)}]. The figure come as answer is 50,000 negative.
D. Net increase in cash
The net increase in the cash is the figure of the net cash generated by the firm for the
period after meeting all the expenses (Miao, Teoh & Zhu, 2016). This is also called as net
cash flow. This effect the closing cash balance of the firm for the period.
The net increase in the cash is calculated by subtracting the net cash used in the
investment activities and the net cash used in the financial activities from the net cash
provided by the operating activities. The figure of this is 29,301.
E. Cash balance at the beginning of the year
Cash balance at the beginning of the year is the balance of cash at the beginning of the
year. This effect the closing cash balance of the firm (Reid & Myddelton, 2017).
This calculated by subtracting the net increase in cash from the closing balance of the
cash. The figure calculated as the cash balance at the beginning of the year is 1,01,065.

4CASH FLOW STATEMENT
References
Ball, R., Gerakos, J., Linnainmaa, J. T., & Nikolaev, V. (2016). Accruals, cash flows, and
operating profitability in the cross section of stock returns. Journal of Financial
Economics, 121(1), 28-45.
Lewellen, J., & Lewellen, K. (2016). Investment and cash flow: New evidence. Journal of
Financial and Quantitative Analysis, 51(4), 1135-1164.
Miao, B., Teoh, S. H., & Zhu, Z. (2016). Limited attention, statement of cash flow disclosure,
and the valuation of accruals. Review of Accounting Studies, 21(2), 473-515.
Reid, W., & Myddelton, D. R. (2017). Cash flow statement. In The Meaning of Company
Accounts (pp. 16-16). Routledge.